2.b o n d (B O N D) is a kind of debt securities, which promises to repay regularly in a specific period. Because the bond market can help the government and enterprises to raise the necessary funds, and it is the place to determine interest rates, it has important special significance in economic activities.
3. Interest rate is the cost of borrowing or the price paid by borrowing funds. There are many interest rates in economic life, such as mortgage interest rate, car loan interest rate and various bond interest rates.
On the one hand, high interest rates will increase the cost of financing, thus preventing or delaying their decision to buy a house or a car. On the other hand, high interest rates will encourage individuals to save more, because they can get more interest income.
Macroscopically, interest rate not only affects consumers' willingness to consume and save, but also affects.
Enterprise's investment decision, so interest rate is of great significance to the healthy operation of the whole economy. For example, in an economic environment with high interest rates, enterprises may delay the construction of new factories, which will adversely affect employment.
The interest rates of different types of bonds vary greatly. For example, the fluctuation range of 3-month treasury bond interest rate is greater than other interest rates, but overall, its average level is the lowest; The average interest rate of BBAA (medium quality) corporate bonds is higher than other types.
4. C O M O N stock, commonly known as stock, represents the owner's ownership of the company. Stock is the right to claim the company's income and assets.
Because the stock price can affect the scale of funds that enterprises can raise by issuing new shares, it determines the expenditure that enterprises can use for investment.
Therefore, the stock market also plays a very important role in the investment decision-making of enterprises. The high share price of an enterprise means that it can raise more funds to buy production facilities and equipment.
The financial system is a complex system, which consists of banks, insurance companies, mutual funds, finance companies, investment banks and other different types of private financial institutions. All financial institutions are strictly supervised by government departments. For example, if someone wants to provide loans to I B M or GM, he will not directly seek the general managers of these companies, but indirectly carry out such activities through financial intermediaries (absorbing depositors' funds and providing loans to enterprises or individuals in need of funds).
6. Banks are financial institutions that absorb deposits and issue loans. As far as institutions are concerned, banks can be subdivided into commercial banks, savings and loan associations, mutual savings banks and credit cooperatives. Banks are the financial intermediaries that deal with the public the most. Many people borrow money from local banks to buy houses or cars.
7. The financial crisis refers to the chaos in the financial market, accompanied by the collapse of asset prices and the bankruptcy of many financial institutions and non-financial institutions.
8.m o n e y, also known as m o n e y supply, is widely accepted in the payment of goods or services and debt repayment. Currency-related economic variables are closely related to each of us, and are also crucial to the healthy development of the economy.
9. Unemployment rate The unemployment rate of available labor force.
10. Money plays a very important role in the formation of business cycle (that is, the upward and downward movement of economic aggregate).
The economic cycle can affect us immediately through many important channels. For example, when the output rises, it becomes relatively easy to find a job; When output drops, it will be more difficult to find an ideal job.
Recession (period of decline in total output). We can find that every economic recession is accompanied by a decline in the growth rate of money, which shows that the fluctuation of commodity and money supply is one of the driving forces of economic cyclical fluctuations. However, not every time the money growth rate drops, there will be an economic recession.
1 1. The average price of goods and services in the economic society is called the total price level, or commodity price level for short.
12. Inflation refers to the continuous rise of the price level.
The level of commodity prices conforms to the trend of commodity money supply.
The continuous increase of money supply should be an important factor to promote the continuous rise of price level (inflation).
There is a positive correlation between the growth rate of money supply and inflation rate: countries with high inflation rate usually have high money growth rate.
13. Monetary policy is the management of money and interest rates.
The central bank is responsible for implementing a country's monetary policy.
14. Fiscal Li Po is a decision on government expenditure and taxation.
Budget deficit refers to the difference between government expenditure and tax revenue in a specific period of time (usually one year). When tax revenue exceeds government expenditure, there will be budget surplus. The government must make up the budget deficit by borrowing, and the budget surplus can reduce the government's debt burden.
15. Cross-border transfer of funds must be converted from the currency of the outflow country (such as USD) to the currency of the outflow country (such as Euro). Foreign eXCHA NGE MAR KET (foreign eXCHA NGE MAR KET) is a place for currency exchange, so it is an intermediary market for transnational transfer of funds.
Another reason why the foreign exchange market is important is that it is the place where the foreign exchange rate (the price of one country's currency expressed in other countries' currencies) is determined.
Note: The falling exchange rate of 1 means that foreign goods are more expensive. The higher cost of going abroad for a holiday will naturally weaken the public's desire to consume foreign goods and services. With the depreciation of the dollar, Americans will buy less foreign goods and increase their consumption of domestic goods (such as traveling in the United States or drinking American-made red wine). On the contrary, the rising exchange rate of the US dollar means that the goods exported by the United States become more expensive in foreign markets, thus reducing the purchases of foreign consumers.
Note 2 With the strengthening of the US dollar exchange rate, steel exports have fallen sharply. A strong dollar improves the living welfare of American consumers by lowering the price of imported foreign goods, but it will impact the sales of American enterprises in the domestic and international markets, thus affecting domestic industries.
The weakening of the dollar exchange rate has the opposite effect: foreign goods have become more expensive, but the competitiveness of American enterprises has increased. In a word, the fluctuation of the foreign exchange market has a very important impact on the American economy.
1. Gross domestic product (GDP) refers to the market value of all final products and services produced by a country in one year.
2. aggregate i n c o m e refers to the total income obtained by producing production factors (land, labor and capital) in the process of producing products and services within one year.
3. Nominal G D P: When the total value of final products and services is calculated at the current price level, the obtained G D P is called nominal G D P.
The word "nominal" means that the value is calculated at current prices.
If all the prices are doubled, but the actual output of products and services remains the same, and people do not enjoy the benefits brought by twice as many products and services, then the name G D P will also be doubled.
4. Actual G D P: A more reliable economic output indicator should be valued at the recognized benchmark annual price (generally 2 0 0 5). G D P measured by constant valence lattice is called real g d p.
The word "actual" means that the value is calculated at constant prices.
In this way, the real variable measures the quantity of products and services, which does not change with the change of price level. The indicator will change only when the actual quantity changes.
Suppose your nominal income in 2 0 0 5 and 2 0 1 6 is150000 USD and 30 0 0 0 USD respectively. If the prices of all commodities double during 2005-20 16, will your living standard improve? The answer is no, although your income has doubled, because the price level has also doubled, 30 thousand dollars can only buy the same amount of goods. It can be seen from the actual income indicators that your income level is unchanged according to the goods you can buy.
According to the price level in 2 0 0 5, the nominal income of $2,065,438+30,000 in 2006 was only equivalent to the actual income of $65,438+05,000. Because the real income in these two years is equal, your living standard in 20 16 years has not changed compared with that in 2 0 0 0. Because real variables are calculated by the actual quantity of products and services, they are more worthy of attention than nominal variables.
Economic and social average price index.
There are three kinds of overall price level indicators widely used in economic data:
The formula of G D P deflator shows that prices have increased by 1 1% on average since 2 0 0 5. In general, the index of price level is expressed in the form of price index, and the material price level in the base year (in our example, 2 0 0 5 is the base year) is expressed as 1 0 0. In this case, the G D P deflator of 2065438+2006 should be11.
2. Personal consumption expenditure deflator, similar to G D P deflator, is the quotient of nominal personal consumption expenditure divided by actual personal consumption expenditure.
3. Consumer price index (CPI) can be obtained by pricing a package of products and services purchased by typical urban families. If the expenditure on this package of products and services increases from $5 0 0 to $6 0 0 within one year, the consumer price index will rise by 2 0%. The consumer price index is also expressed by the price index based on 1000.
Consumer price index, P C E deflator and G D P deflator, which measure the overall price level, can turn nominal variables into real variables. Divide the nominal variable by the price index to get the real variable. In our example, the true G D P in 20 1. 1.65438 (expressed as 1. 1 in exponential form) is equal to.
Where t means now and t- 1 means a year ago.